The Becoming Sovereign Podcast
Aug 30, 2026 · 1 hr 21 min · 11 segments
In this episode of the *Becoming Sovereign* podcast, host Brandon Karpeles is joined by Rod Palmer, credentialed journalist and co-host of *Bugle News*. Moving away from strictly evergreen topics…
Rod PalmerGuest
Brandon KarpelesHost
I mean, I remember in September 2019 being in the banking industry and I remember it was talk, by the way.

So there's a thing called, for those not familiar, there's a thing called the overnight rate, which is what banks lend to each other, basically to shore up their sham fractional reserve books at the end of the day.

So it If you're at 88% loans to deposit, which basically means you have 8.8 times the amount of loans you do deposits, you're allowed to go up to 90%.

So basically you say, I want to sell some of my deposits at the end of the day and hold some higher yielding instruments because I can.

And there's an active market between all of the federally chartered banks and nationally chartered banks as well that basically the banks have an agreement that like, hey, when you're short, we'll give it to you.

trade or uh market arbitrage whatever you want to call it and no one ever talks about that it's no one has any idea about it it's two you know one or two guys in some room somewhere that nobody knows what their job is they make like 112 000 a year and they just like click buttons to make sure this all balances out at the end of the day and um uh i remember the talk was like That number is usually under a percent.

And which means basically the banks are saying that I need 2% returns from you to actually give you my capital.

And it was like the talk everywhere, like the overnight rates are at 12 and a half percent.

And then just quietly, they just kind of injected like nine hundred billion dollars in and they they basically gave it to the banks.

I mean, I remember in September 2019 being in the banking industry and I remember it was talk, by the way.

So there's a thing called, for those not familiar, there's a thing called the overnight rate, which is what banks lend to each other, basically to shore up their sham fractional reserve books at the end of the day.

So it If you're at 88% loans to deposit, which basically means you have 8.8 times the amount of loans you do deposits, you're allowed to go up to 90%.

So basically you say, I want to sell some of my deposits at the end of the day and hold some higher yielding instruments because I can.

And there's an active market between all of the federally chartered banks and nationally chartered banks as well that basically the banks have an agreement that like, hey, when you're short, we'll give it to you.

trade or uh market arbitrage whatever you want to call it and no one ever talks about that it's no one has any idea about it it's two you know one or two guys in some room somewhere that nobody knows what their job is they make like 112 000 a year and they just like click buttons to make sure this all balances out at the end of the day and um uh i remember the talk was like That number is usually under a percent.

And which means basically the banks are saying that I need 2% returns from you to actually give you my capital.

And it was like the talk everywhere, like the overnight rates are at 12 and a half percent.

And then just quietly, they just kind of injected like nine hundred billion dollars in and they they basically gave it to the banks.
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